The Hindu Business Line : Query Corner

NIIT (Rs 122.1): There appears to be little downside risk in this stock. A close below Rs 114 would impart bearish trend and could push the scrip to the Rs 90-95 range. However, a move past Rs 135 could impart bullish trend. Remain invested with a stop loss stop loss at Rs 114.

Canara Bank (Rs 117.7): The stock is stuck in a trading range. Only a breakout from this range would impart decisive trend in the stock. A move past Rs 125 would have positive implications while a close below Rs 85 would have negative implications. Remain invested with a stop loss at Rs 99.

I have 10,000 shares of Arvind Remedies. What are the prospects? — Praveen

Arvind Remedies (Rs 5.9): Though there is a possibility of a drop to the Rs 4 - 4.5 range in the near term, the long-term outlook continues to remain positive. If the position is "in the money" it would be better to take part profits. For the remaining portion, a stop loss may be placed at Rs 4. On the upside, the scrip appears to have the potential to move past Rs 9.

I have shares of IFCI and Neyveli Lignite. Can I hold on to them for some more time? — C. Dayakar

IFCI (Rs 16.4): The recent uptrend does not appear complete as yet. The share price of the company could seek higher levels in the near term. Only a move below Rs 12 would negate the positive outlook. Remain invested with a stop loss at Rs 12.

Neyveli Lignite (Rs 42.4): The scrip has the potential to move to higher levels. There is no technical reason to reduce exposures at current levels. Remain invested with a stop loss at Rs 38.

I have bought HCL Infosystems at Rs 153 and Geometric Software at Rs 333. How long can I hold them? — T.N. Sivasubramanian

HCL Infosystems (Rs 168.7): The stock could seek higher levels in the near term. A move towards the Rs 185-190 range appears. Remain invested with a stop loss at Rs 150. A drop below Rs 150 would warrant closure of existing holdings.

Geometric Software (Rs 325.9): The downside risk in the stock appears limited. Only a drop below Rs 305 would impart bearish trend. Remain invested with a stop loss at Rs 304.

I am holding 400 shares of Prism Cements. I plan to buy more shares of this Company. Please advice. — Kishan

Prism Cement (Rs 12.6): The outlook for the stock appears bullish. A move past Rs 16 would have positive implications and could push the scrip to Rs 20.

Only a close below Rs 10.5 would negate the positive outlook. Remain invested with a stop loss at Rs 10.5. Fresh buying may be considered on a move past Rs 16.

What is your outlook on Essar steel & Videocon International? — Kishore Matta

Essar Steel (Rs 28.7): The stock appears to have some upside potential from current levels. Only a drop below Rs 19 would negate the bullish outlook.

On the upside, the stock could dart back to the Rs 37-38 range in the near term. Stop loss for long positions may be placed at Rs 19.

Videocon International (Rs 53.45): The outlook for this stock is positive. A move past Rs 60 would have positive implications and could push the scrip to the Rs 68-70 range. Remain invested with a stop loss at Rs 43.

I am holding 1,000 shares of HPCL since IPO. Should I sell them? — A.K. Chaudhary

HPCL (Rs 399.4): There is no reason to sell the shares at current levels as the outlook is positive. The stock appears to be in the early stages of a major upward move. Remain invested with a stop loss at Rs 330. A close below Rs 330 would blunt the positive outlook and would warrant dilution of holdings. On the upside, the stock could yield returns in excess of 30 per cent over a holding period of about six months.

I bought SBI at Rs 240 and Arvind mills at Rs 44. I want to know whether I can hold and what are the future prospects of these companies. — Shankar & C.D.Antony

SBI (Rs 434.9): The stock has some upside potential from current levels. A move towards the Rs 460-470 range appears likely in the near term. Remain invested with a stop loss at Rs 400.

Arvind Mills (Rs 42.8): Though the stock could seek lower levels in the near term, the overall outlook appears bullish.

A drop to the Rs 38-39 level appears likely. Only a close below Rs 37.5 would negate the positive outlook. Remain invested with a stop loss at Rs 37.5.

I have SBI bought at Rs 440 and J.B.chemicals at Rs 239. What is the outlook for these stocks and how long can I hold? — J.Sankar & Lalit V. Sanghavi

SBI (Rs 434.9): The outlook for the stock is covered elsewhere in this column.

J.B.Chemicals (Rs 239.4): The stock is at present ruling close to a crucial resistance level of Rs 245-250.

While the outlook for the stock is positive, only a move past Rs 250 would impart bullish momentum. Remain invested with a stop loss at Rs 210.

I am holding Tata Steel at the price of Rs.229 and Maruti Udyog at Rs.205. What is the outlook of these two stocks? — N. Gopalakrissnan

Tata Steel (Rs 253.3): The overall outlook for the stock is positive. The stock appears to be in the early stages of a major bull run. Remain invested with a stop loss at Rs 240.

Maruti Udyog (Rs 229.3): There is inadequate trading to arrive at a technical outlook for the stock. As the position is "in the money" have a trailing stop loss to protect unrealised gains.

What is the outlook for IVRCL Infrastructure? — M. Vittal

IVRCL Infrastructure (Rs 75.3): The stock appears to be headed towards the Rs 64-66 level in the near term. It would be better to avoid fresh exposures now. Evidence of support at around Rs 64 could be used to take fresh long positions.

I purchased Infotech Enterprises at Rs 120. What is the outlook? — P. Sivaswamy & K.V. Rao

Infotech Enterprises (Rs 102.1): There is little downside risk in the stock from current levels. Only a drop below Rs 89 would impart negative trend. Remain invested with a stop loss at Rs 95.

I want to buy Lupin Lab and Shasun Chemicals for long term. I want to know the technical outlook and the rate at which I can enter these stocks. — Suresh Baskaran

Lupin Lab (Rs.455.6): Technically, the outlook for the stock is bullish. A move towards the earlier high of Rs 650 appears likely.

Existing holders could remain invested. Fresh buying may also be considered at current levels with a stop loss at Rs 410. A close below Rs 360 would negate positive outlook and could push the scrip to lower levels.

Shasun Chemicals (Rs 242): The stock appears to be in the midst of a major uptrend. However, the near-term trend would depend on the price movement in the next few weeks. While a move below Rs 230 would have negative implications, a move past Rs 275 would restore positive trend.

A close below Rs 230 could push the scrip to Rs 180-190 levels. It would be better to adopt a cautious approach and long positions may be considered once the stock moves past the Rs 275 mark.

(Note: The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

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